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Whenever a company loses a major product-liability lawsuit, [#permalink]

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07 Dec 2003, 16:02

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C

D

E

Difficulty:

(N/A)

Question Stats:

50%(04:04) correct
50%(02:16) wrong based on 6 sessions

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Whenever a company loses a major product-liability
lawsuit, the value of the companyтАЩs stocks falls
significantly within hours after the announcement. Cotoy
has long been involved in a major product-liability
lawsuit, and its stocks fell significantly in value today.
Therefore, we can be sure that an unfavorable judgment
against Cotoy in that lawsuit was announced earlier
today.

Which one of the following contains flawed reasoning
that most closely parallels that in the argument above?

(A) Whenever a business treats its customers
discourteously, its customers begin to shop
elsewhere. Shopwell wants to keep all of its
customers; therefore, its employees will never
treat customers discourteously.
(B) Whenever the large airlines decrease fares, the
financial stability of smaller competing airlines
is adversely affected. Therefore, the smaller
competing airlinesтАЩ financial stability must be
seriously threatened when the large airlines
announce a large price decrease.
(C) Whenever a country shows a lack of leadership
on international issues, respect for the countryтАЩs
policies begins to decline. Therefore, to gain
respect for its policies, a country should show
leadership on international issues.
(D) Whenever an entering student at Cashman
College wins the Performance Fellowship, he or
she receives $10,000. Therefore, Eula, a student
who has enrolled at Cashman, must have won
the Performance Fellowship, because she just
received $10,000 from the college.
(E) Whenever a company advertises its products
effectively, the companyтАЩs sales increase.
OrocoтАЩs sales have not increased; therefore, it is
likely that the company did not advertise its
products effectively.

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07 Dec 2003, 18:51

sunniboy007 wrote:

Whenever a company loses a major product-liability lawsuit, the value of the companyтАЩs stocks falls significantly within hours after the announcement. Cotoy has long been involved in a major product-liability lawsuit, and its stocks fell significantly in value today.Therefore, we can be sure that an unfavorable judgment against Cotoy in that lawsuit was announced earlier today.

Which one of the following contains flawed reasoningthat most closely parallels that in the argument above?

(A) Whenever a business treats its customersdiscourteously, its customers begin to shopelsewhere. Shopwell wants to keep all of itscustomers; therefore, its employees will nevertreat customers discourteously.(B) Whenever the large airlines decrease fares, thefinancial stability of smaller competing airlinesis adversely affected. Therefore, the smallercompeting airlinesтАЩ financial stability must beseriously threatened when the large airlinesannounce a large price decrease.(C) Whenever a country shows a lack of leadershipon international issues, respect for the countryтАЩspolicies begins to decline. Therefore, to gainrespect for its policies, a country should showleadership on international issues.(D) Whenever an entering student at CashmanCollege wins the Performance Fellowship, he orshe receives $10,000. Therefore, Eula, a studentwho has enrolled at Cashman, must have wonthe Performance Fellowship, because she justreceived $10,000 from the college.(E) Whenever a company advertises its productseffectively, the companyтАЩs sales increase.OrocoтАЩs sales have not increased; therefore, it islikely that the company did not advertise itsproducts effectively.